Friday, 03 March 2017 09:00

Mastercard wins 'overcharging' court battle

Both UK customers and some high profile high street stores are still reeling after they lost a battle with credit card giant Mastercard after an allegation was made that firms were overcharged on interchange payments. A court decided that both consumers and stores were not ripped off and that nothing unlawful occurred.

Popular stores such as Next and Topshop had gone to court to claim that they felt they were being charged too much on interchange expenditures – this is paid by the stores to the credit/debit card providers when a customer goes into a shop and buys good using their cards.

The decision in Mastercard’s favour means that the company will now not have to pay anything in the form of compensation. The court argument is said to have cost around £510million pounds.

A spokesperson for Mastercard has allegedly said that the company felt the ruling was just and that they can now continue their practice as normal. They had no doubts that the decision would come back in their favour.

Looking at opinion since this story broke, many people have come out in defence of Mastercard and believe that the high street stores knew what they were getting into and that the use of cards has given them far more advantages than they give it credit for. There would have to be a contract in place whereby both parties sign to declare that they agree the charges on the cards so the high street stores would have some idea as to what the charges were but only now are starting to get shirty. 

Ultimately it is the stores that feel the most hard done to, as the credit cards actually do hold more advantages to the consumer in terms of protection. The high street stores, however, feel they have been well and truly ripped off but the court has decided that Mastercard has done nothing ‘anti -competitive’ and wrong.

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